Leicester City, likely to be one of Town’s main rivals for promotion from the Championship, are facing a potential points deduction next season having been referred to to an independent commission by the Premier League for an alleged breach of EFL financial rules in their 2023/24 Championship promotion campaign.
An arbitration tribunal upheld an earlier decision that the Premier League could not punish Leicester for breaching their profit and sustainability rules (P&S) in the 2022/23 season as the Foxes had been relegated from the top flight at the end of that term.
However, it ruled that the Premier League is in a position to investigate Leicester, who along with the Blues have been relegated back to the Championship this season, for breaching EFL P&S rules in 2023/24.
"The tribunal confirmed that the Premier League has the power to investigate an alleged breach of the P&S rules because the EFL validly transferred responsibility for its investigation to the Premier League in June 2024, when the club was promoted from the Championship,” a Premier League statement reads.
"The Premier League continues to have jurisdiction even though Leicester City will be relegated to the Championship at the end of this season.”
In addition, Leicester are alleged to have breached their obligation to provide annual accounts to the Premier League by the end of 2024 as well as providing "full, complete and prompt assistance” to the league regarding its enquiries.
Leicester, who beat Town 2-0 at the King Power Stadium on Sunday, welcomed the tribunal upholding the 2022/23 ruling and say they will assist the commission.
"Consistent with its previous commitments, the club intends to engage cooperatively in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24 [fiscal year ending in 2024],” the Foxes said in a statement.
"However, we will not be able to comment further on these proceedings until they are concluded, due to their confidential nature.”
An EFL spokesman said: "The EFL notes that the Premier League has today referred Leicester City to an independent commission for an alleged breach of profit and sustainability rules for the period ending season 2023/24.
"The EFL commenced an investigation into this reporting period following the March 2024 submissions and as is permitted in accordance with EFL regulations, jurisdiction for that passed to the Premier League at the conclusion of the 2023/24 season on the club’s promotion.
"We will now await the outcome of the Premier League proceedings and until then are not able to comment any further on the matter.”